Treasury's $72.4M IRS Contact Center Contract Awarded to Maximus Federal Services
Contract Overview
Contract Amount: $72,427,927 ($72.4M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2021-05-05
End Date: 2022-06-13
Contract Duration: 404 days
Daily Burn Rate: $179.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: WAGES AND INVESTMENTS DIVISION ECONOMIC IMPACT PAYMENT (EIP) III LIVE AGENT CONTACT CENTER COVID-19
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $72.4 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: WAGES AND INVESTMENTS DIVISION ECONOMIC IMPACT PAYMENT (EIP) III LIVE AGENT CONTACT CENTER COVID-19 Key points: 1. Contract awarded to Maximus Federal Services for IRS contact center operations. 2. Significant investment in supporting Economic Impact Payments (EIP) III. 3. Full and open competition was utilized. 4. The contract duration is 404 days.
Value Assessment
Rating: good
The contract value of $72.4 million for a 404-day period appears reasonable given the scope of supporting a major government program like EIP III. Benchmarking against similar large-scale contact center operations for government agencies would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used to ensure efficient delivery of critical economic impact payments through a dedicated contact center.
Public Impact
Ensures taxpayers can receive assistance with Economic Impact Payments. Supports the operational needs of the Internal Revenue Service during a critical period. Provides employment opportunities within the contact center industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized
- Supports critical government program (EIP III)
- Clear contract duration and award type
Sector Analysis
This contract falls within the IT and professional services sector, specifically focusing on contact center operations. Spending benchmarks for similar government contact center contracts vary widely based on complexity and scale.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Maximus Federal Services. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Treasury's Internal Revenue Service. Oversight would focus on performance metrics, service level agreements, and adherence to contract terms.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for high cost per labor hour if not properly benchmarked.
- Reliance on a single contractor for critical taxpayer support.
- Need for clear performance metrics and oversight to ensure service quality.
Tags
telemarketing-bureaus-and-other-contact-, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $72.4 million to MAXIMUS FEDERAL SERVICES, INC.. WAGES AND INVESTMENTS DIVISION ECONOMIC IMPACT PAYMENT (EIP) III LIVE AGENT CONTACT CENTER COVID-19
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $72.4 million.
What is the period of performance?
Start: 2021-05-05. End: 2022-06-13.
What is the projected cost per labor hour for this contract, and how does it compare to industry benchmarks?
The total contract value is $72,427,927.06 over 404 days with 1 labor hour. This suggests a very high cost per labor hour if only one hour is accounted for. However, 'LABOR HOURS' likely refers to the contract type, not the total hours. A precise per-labor-hour cost requires the total number of labor hours to be specified, which is not provided in the data.
What are the key performance indicators (KPIs) for this contact center, and how will their achievement be measured?
Key performance indicators for this contract would likely include metrics such as average call handling time, first call resolution rate, customer satisfaction scores, and agent adherence to schedule. The IRS would establish specific targets for these KPIs within the contract's statement of work, with regular reporting and performance reviews to ensure accountability.
What is the potential risk of service disruption or inadequate support for taxpayers given the contract's duration and scope?
The risk of service disruption is moderate. While the contract is for a defined period (404 days), the scope of supporting EIP III is substantial. Potential risks include contractor performance issues, unforeseen surges in call volume, or staffing challenges. Robust oversight and contingency planning by the IRS are crucial to mitigate these risks.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc
Address: 3120 FAIRVIEW PARK DR STE 400, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $76,651,054
Exercised Options: $72,427,927
Current Obligation: $72,427,927
Actual Outlays: $72,427,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F685GA
IDV Type: FSS
Timeline
Start Date: 2021-05-05
Current End Date: 2022-06-13
Potential End Date: 2022-06-13 00:00:00
Last Modified: 2025-10-06
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